Feed grain, oilseed futures rally over concerns about crop size

Feedstuffs, August, 2004 by Gil Gullickson

Feed grain and oilseed futures bounced back last week based on the belief that 2004 crop production expectations may be overhyped.

"It's very typical for the market this time of year--if you have good growing season--to overextend the big crop talk," said Dan Zwicker, grain market analyst for AgriVisor, Bloomington, Ill. "If it's an adverse growing season, the small crop talk is overextended."

Trade chatter and some private reports have anticipated corn production hit 11 billion bushels. However, crop ratings by the U.S. Department of Agriculture for the week ended Aug. 1 indicate that production may be less than expected. Corn in good to excellent condition tallied 76%, down 1% from the previous week.

"There were probably some concerns about...